If you receive military retirement pay, Rhode Island generally does not tax that income.
Beginning January 1, 2023, military retirement income became fully exempt from Rhode Island income tax. If you're filing a Rhode Island return and receive military retirement benefits, you may be able to exclude the full amount from your Rhode Island taxable income.
Military Retirement Income Exemption
For tax years 2023 and later, Rhode Island allows a full exemption for military retirement pay.
If you're filing a 2024, 2025, or 2026 Rhode Island return, enter your military retirement income separately so it can be claimed as an exemption on your Rhode Island return. Do not include any amount that has already been reduced by another retirement-income modification.
What About Earlier Tax Years?
Before the military retirement exemption took effect, Rhode Island offered a retirement income subtraction for certain taxpayers who had reached their full retirement age.
For tax years 2021 through 2023, you may qualify for a subtraction from taxable retirement income if you meet the eligibility requirements. Review the Rhode Island instructions for taxable retirement income to determine whether you qualify.
How Do I Enter the Military Retirement Exemption in the Program?
To claim the Rhode Island military retirement modification:
- Go to State.
- Three dots to Edit Rhode Island Return.
- Subtractions From Income.
- Enter the amount under Modification for Taxpayers Receiving Military Service Pensions under RIGL §44-30-12(c)(11).
Be sure not to include amounts already adjusted under the Rhode Island modification for taxable retirement income from certain pension plans or annuities under RIGL §44-30-12(c)(9).
See our related article: Is my retirement income taxable to Rhode Island?